New Hampshire becomes the first US state to create a Bitcoin reserve with House Bill 302, allowing up to 5% of public funds for Bitcoin investments. The law mandates secure asset custody and hopes to inspire other states for similar ventures, though other states like Arizona and Florida have faced setbacks in their cryptocurrency proposals.
New Hampshire recently made waves in the financial world by passing House Bill 302 (HB 302), becoming the first US state to set up a Bitcoin and Digital Assets Reserve Fund. This legislative move, announced by Dennis Porter of Satoshi Action Fund on May 7, allows the state treasurer to allocate 5% of public funds to Bitcoin and other digital assets. The focus here is really on using decentralized finance strategies to secure taxpayer funds.
The bill, which was introduced in January, proposes that public funds can be invested not just in Bitcoin but also in precious metals and other top-tier digital assets with a market cap exceeding $500 billion. For context, Bitcoin’s current market cap stands around a hefty $1.9 trillion, based on TradingView figures. This move may well mark a significant pivot in how state funds are managed and invested.
A key stipulation of the law is that any digital assets need to be held using highly secure custody solutions. Basically, this means that these assets must be either in a state-controlled multisignature wallet, held by qualified custodians, or via regulated exchange-traded products (ETPs) in the US. This is all about ensuring safety and security for the state’s investments.
Dennis Porter really emphasized the influence of this law, stating, “Satoshi Action drafted the model, New Hampshire engraved it into law, and now every treasurer nationwide can follow that roadmap.” He further argued that HB 302 not only helps to protect taxpayer money but also diversifies reserves and makes state treasuries more future-proof.
The success of the bill can largely be attributed to the hard work of Representative Keith Ammon, a long-time Bitcoin supporter, and Majority Leader Jason Osborne, who worked tirelessly to shepherd the legislation through the process. It’s set to become effective 60 days post-passage, allowing the state to start acquiring digital assets promptly.
Notably, New Hampshire’s move comes amid various other states exploring similar initiatives. However, things haven’t fared as well for others. For instance, just last week Arizona Governor Katie Hobbs vetoed a bill allowing state investments in Bitcoin and digital assets. That particular proposal, SB 1025, had ambitions of allocating up to 10% of state treasury and pension funds into cryptocurrencies.
Additionally, in Florida, momentum for Bitcoin legislation seems to have come to a standstill. Two bills, House Bill 487 and Senate Bill 550, aimed at creating a state-level Bitcoin reserve were indefinitely postponed as the legislative session wrapped up on May 2. They sought to allow certain state funds to be invested in Bitcoin but sadly didn’t make it through before the deadline.
As New Hampshire sets into motion its unprecedented Bitcoin reserve, the eyes of many states are surely watching with interest, seeing if this could be the beginning of a larger trend on the national stage.
